When considering GDP as a measure of the nation's economic performance, which of the following statements is NOT true?
A) GDP is a good measure of a nation's overall welfare.
B) GDP is useful to map changes in the economy's domestic economic performance over time.
C) GDP is underestimated because it does not include illegal activities.
D) GDP would be a better measure of economic performance if it included nonmarket activities.

Question

Quizplus · Accepted Answer

GDP is not a good measure of a nation's overall welfare as it only measures economic activity and does not take into account non-economic factors such as environmental sustainability, quality of life, and income distribution.

When Considering GDP as a Measure of the Nation's Economic